Are We Prepared for the Energy Movements? JEANNIE BECKETT THE BECKETT GROUP ENERGY EXPORT PERMITTING IN THE NW JUNE SEA-TAC CONFERENCE CENTER

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1 Are We Prepared for the Energy Movements? JEANNIE BECKETT THE BECKETT GROUP ENERGY EXPORT PERMITTING IN THE NW JUNE SEA-TAC CONFERENCE CENTER Topics Capacity existing infrastructure Further rail/port improvement and expansion Increased rail/port traffics affect on transportation availability and costs for other current users Affect of traffic on neighboring communities and the Pacific Northwest at large Potential requirements for proposed projects Steps to help with environmental concerns 1

2 Value of the Port and Rail System WA state s port and rail system yield significant benefits to Washington state citizens and industries. Benefits include: economic, environmental, safety, efficiency and mobility. 1 in 3 Jobs in WA are trade dependent. Rail Volumes by Direction 2010 vs System Infrastructure Capacity Shipping Terminals Capacity Land availability Productivity Road Infrastructure (City, State and Federal) Port / Local Rail Capacity (land availability) Mainline Rail Capacity Environmental Capacity (????) 2

3 Many Parts One System Parts of the Port and Rail System Freight Capacity is dependent on Capacity at each node within the system Docks and Waterways Terminal and Yards Short-Line Railroads Class I Railroads Ports are both Public and Private Rail system ownership primarily in private hands Roads are public assets The responsibility for tackling many of the challenges will fall on a combination of the parties. WA Rail Network Freight Passenger Capacity is determined by the coordination of these two systems Speed Variations Frequency Commuter Windows 3

4 Diversity of freight capacity interests (and influence) Private sector interests Highway builders Private trucking industry Private railroads International shipping companies Private terminal operators Third party logistics firms Ports Shippers Organized labor Private financial community Other public sector interests U.S. Department of Defense State DOTs Metropolitan planning organizations (MPOs) Impacted communities Environmental interests USDOT Balancing capacity and demand will require 7efforts by both the public and private sectors Transportation Policy Initiatives Recognizing the different needs of each Business 4

5 Current Volumes Source: AAR Cost of Congestion In 2013, ATRI estimated that congestion costs to the trucking industry totaled over $9.2 billion dollars; total delay in 2013 was 141 million hours, which equals more than 51,000 drivers sitting idle for a year. 89% of congestion costs are attributed over only 12% of interstate system mileage 5

6 Growth Strategies Velocity + Density creates Capacity Which in turn enables more growth Density Velocity Reliability Current US Rail Statistics Average Train Speeds Average Dwell Times Source: AAR 6

7 A Vision for the Future WA Annual Bidirectional Rail Volumes to US Regions, 2035 Future Exports Energy Exports Coal Oil Natural Gas Other Export Bulks Fertilizers Ore/ Concentrates Copper Potash Consumer Goods will continue to grow empty containers Auto & Machinery Exports 7

8 Examples of Potential Growth Estimated Rail Capacity by 2035 Pasco-Spokane at 170 percent utilization. Seattle-Spokane via Wenatchee at 150 percent utilization. Spokane-Hauser Junction, Idaho at 150 percent utilization. Vancouver-Pasco at 140 percent utilization. Seattle-Portland and Everett- Burlington are projected to be near the 100 percent utilization mark, which would make it difficult to handle variations or additional traffic without adding excessive delays. 8

9 Growing Freight Volumes Rapid growth in volume due to the export of energy and other bulk products will probably mean demand will exceed capacity sooner than Environmental studies for new terminals such as Gateway Pacific and Millennium will provide an in-depth look at train volumes. Continued collaborative planning with stakeholders and partners is required to refine and focus investment priorities for all of the potential port, road and rail projects. Growth Strategies EFFECIANT/ FLUID SYSTEM VELOCITY DENSITY RELIABILITY VISIBILITY 9

10 The page will contain: BNSF s new webpage The most recent weekly service advisories The most recent customer Service Presentations A summary of maintenance and investments projects A summary of their expansion efforts A form that will allow customers to ask questions about their service Collaboration with BNSF/ UP Rail Partners Tacoma-Vancouver Union Pacific and BNSF Intermodal Traffic Stevens Pass BNSF Intermodal Traffic Everett Seattle Tacoma Portland Stampede Pass BNSF Carload Traffic BNSF Intermodal UP Intermodal 10

11 Great Northern Corridor Crosses Multiple Geopolitical Boundaries: 8 States: IL, WI, MN, ND, MT, ID, OR, WA WA, OR, MT, MN Ports 18 MPOs 1,000 Municipalities 125 Counties 27 Million Americans, 12 Million U.S. Jobs $1.4 Trillion in GDP 432,000 Businesses Great Northern Corridor Coalition Current Project: Improve Communication and collaboration among members Inventory and assess corridor infrastructure Analyze freight flows and industry trends Identify and develop potential improvement projects or initiatives- including criteria for selection 11

12 Port of Tacoma Rail Communication A joint partnership of rail partners responsible for increasing the velocity of the all rail traffic moving off and on the Tacoma Tideflats, providing economic growth for the communities and success to the customers Pricing and Capacity Unit Trains vs. Small lots Capacity everyone has a responsibility to make the System Efficient and Fluid Proper Terminal, Storage and Last Mile Infrastructure easy in, easy out Good Plans Have a Clear Plan- who, what, when Communicate the Plan Test the Plan Meet the Plan Surprises cost $ 12

13 Challenges Growth is uneven year to year Infrastructure takes up to 10 years to build Who should pay for the infrastructure? Who truly benefits from the infrastructure? Funding is always an issue Pricing vs. Service vs. Capacity Steps needed to meet the volume estimates Need to proactively managing the rail flows: each terminal has to have productivity goals and set rail schedules Document the Processes and look for opportunities for improvement Continue to measure current activitiesdeveloping a dashboard reporting system Forecast the Future - Test Capacity Proof the Designs before construction Expand the Network and Build redundancy into the system 13

14 The Local Community Issues Good Neighbor Policy- Environmentally Friendly Growth Noise Lights Emissions Grade Crossings Safety Including Trespassing Idling Finding the Balance Economic Development for Region vs. Individual agendas Jobs Congestion What it s going to take We all must Be TEAM PLAYERS, It s a Team Sport. Continue developing the regional perspective on growth and demand Continue engaging All Partners understand their plans and sharing ours Define what is Public and what is Private Investigate a wider range of funding options Engagement with our neighbors preventing deterioration of relationships 14

15 Freight policy strategies Achieve compatible state and national freight strategies More coordination at federal, state and local levels Emphasize corridor approach Great Northern Corridor Work with Regional Governmental Forums Pacific Coast Collaborative Leaders Forum Develop strategies between states Additional Federal funding for freight as well as passengers Freight policy objectives Improve the operations of the existing freight transportation system Add physical capacity to the freight transportation system in places where investment makes economic sense Use pricing to better align all costs and benefits between users and owners of the freight system and to encourage deployment of productivity-enhancing technologies 30 15

16 Freight policy objectives Reduce or remove statutory, regulatory, & institutional barriers to improved freight transportation performance. Proactively identify and address emerging transportation needs Maximize the safety and security of the freight transportation system Mitigate and better manage the environmental, health, and community impacts of freight transportation 31 Solutions for the Future Work with all the Partners to Prioritize, Fund and Build Solutions for the Highest Priority Chokepoints Continue to work with WSDOT Rail and Marine Office and the Washington Public Port Association to review Statewide Road and Rail Capacity Study Capacity issues at each Port- the last mile Develop and Participate in a FAST Corridor type of Project Planning and Implementation process 15 priority Puget Sound Grade Separations Projects with 20 public/ private Partners 16

17 Land use Solutions Industry Only Zones near Ports Ensure last mile connectivity Build the correct ratio of loading/ unloading track to support/ staging tracks Actively Worked to secure a Buffer Zone between Residential and Industrial uses Tacoma Tideflats Stakeholder Outreach Transparency of Decisions Web streaming Meetings Public Friendly Public Comment Format Freedom of Information Act Open Meetings Act Public Awareness Open Houses Commission Work sessions Editorial Boards Communication of Future Plans Local Communities Local Cities Community Groups 17

18 Environmental Concerns Rail is one of the most environmentally friendly modes of transportation. Mode share: Maximize use of freight and passenger rail to reduce demand on highways and air transportation and to reduce greenhouse gas emissions. Consider rail in multimodal planning for high-capacity transportation corridors. Thank You Working together we can achieve Good jobs and good life for all creatures big and small. 18

19 Questions? Jeannie Beckett The Beckett Group

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